chapter 16: managing retailing, wholesaling and logistics

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Chapter 16:

Ms. Mary Rose R. MendozaAteneo Graduate School of Business

Managing Retailing, Wholesaling & Logistics


1. The following are major types of retailer except _____________.

a) Discount storeb) Department storec) Catalog showroomd) Supermarkete) Brokers and agents

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1. The following are major types of retailer except _____________.

a) Discount storeb) Department storec) Catalog showroomd) Supermarkete) Brokers and agents

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CONCEPT #1

Specialty StoreDepartment StoreSupermarketConvenience StoreDiscount StoreOff-price retailerSuperstoreCatalog showroom

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Major Retailer Types


2. __________ is a type of nonstore retailing which offers a variety of impulse goods such as softdrinks, coffee, & candy.

a) Direct marketingb) Direct sellingc) Network marketingd) Automatic vendinge) Buying services

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2. __________ is a type of nonstore retailing which offers a variety of impulse goods such as softdrinks, coffee, & candy.


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CONCEPT #2

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– selling door-to-door or at home sales parties; also called multilevel marketing or network marketing;

– the use of telemarketing, television direct-response marketing and electronic shopping;

– offers a variety of merchandise, including impulse goods such as cigarettes, softdrinks, coffee, candy;

– a storeless retailer serving a specific clientele – usually employees of large organizations;

Direct Selling

Direct Marketing

Automatic Vending

Buying Service

Non-Store Retailers


3. Amazon.com & Zappos.com as online retail stores fall into what category of non-store retailing?


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3. Amazon.com & Zappos.com as online retail stores fall into what category of non-store retailing?


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CONCEPT #2

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– selling door-to-door or at home sales parties; also called multilevel marketing or network marketing;

– the use of telemarketing, television direct-response marketing and electronic shopping;

– offers a variety of merchandise, including impulse goods such as cigarettes, softdrinks, coffee, candy;

– a storeless retailer serving a specific clientele – usually employees of large organizations;

Direct Selling

Direct Marketing

Automatic Vending

Buying Service

Non-Store Retailers


4. Which service mix includes general information, parking, restaurants, &repairs in its customer offerings?

a) Prepurchase servicesb) Postpurchase servicesc) Customer servicesd) Ancillary servicese) Customized services

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4. Which service mix includes general information, parking, restaurants, &repairs in its customer offerings?

a) Prepurchase servicesb) Postpurchase servicesc) Customer servicesd) Ancillary servicese) Customized services

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CONCEPT #4

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Prepurchase Services

Postpurchase Services

Ancillary Services

Service Mix

-include accepting telephone and mail orders, advertising, window and interior display, fashion shows;

-include shipping and delivery, gift wrapping, adjustments and returns, installations;

-include general information, check cashing, parking, restaurants, repairs, credit, rest rooms;


5. The following are indicators of sales effectiveness except _____________.

a. people traffic or average number of people passing per dayb. percentage who enterc. percentage who buyd. average amount per salee. number of customer complaints

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5. The following are indicators of sales effectiveness except _____________.

a. people traffic or average number of people passing per dayb. percentage who enterc. percentage who buyd. average amount per salee. number of customer complaints

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CONCEPT #5

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Average # of people passing per day

Percentage who enter

Percentage who buy

Average amount per sale

Sales Effectiveness Indicators


6. Bookstores featuring coffee shops and gas stations with food stores are examples of what retail trend?

a. Growth of Intertype Competitionb. Competition between store-based

and non-store based retailingc. Decline of middle market retailersd. New retail forms and combinationse. Growth of giant retailers

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6. Bookstores featuring coffee shops and gas stations with food stores are examples of what retail trend?

a. Growth of Intertype Competitionb. Competition between store-based

and non-store based retailingc. Decline of middle market retailersd. New retail forms and combinationse. Growth of giant retailers

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CONCEPT #6

Growth of Intertype Competition (Wal-Mart and Tesco are expanding into product areas such as clothing, health and beauty;)

Competition between store-based and non-store based retailing (Threats of online, direct mail, television, computer and telephone retailing;)

Decline of middle market retailers (The retail market is centered at the top and at the bottom;)

New retail forms and combinations (Supermarkets with bank branches, gas stations with food stores;)

Growth of giant retailers (Giant retailers have superior information and logistical systems and greater buying power;)

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Retailing Trends


7. The following are true about retail marketing decisions except _________:

a. Retailers’ target market is moving towards niche markets;b. Retailers usually mark up cost of goods by a standard percentage;c. Retailers greatly consider store atmosphere that would match customer motivation; d. Retailers use wide range of communication tools such as ads, special sales, money-saving coupons, to generate traffic and sales;e. Retailers select locations that are accessible to target market.

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7. The following are true about retail marketing decisions except _________:

a. Retailers’ target market is moving towards niche markets;b. Retailers usually mark up cost of goods by a standard percentage;c. Retailers greatly consider store atmosphere that would match customer motivation; d. Retailers use wide range of communication tools such as ads, special sales, money-saving coupons, to generate traffic and sales;e. Retailers select locations that are accessible to target market.

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CONCEPT #7

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Target Market

Product Assortment

Procurement

Prices

Services

Store Atmosphere

Store Activities

Communications

Locations

Retailers’ Marketing Decisions

In terms of pricing, wholesalers usually mark up cost of goods by a standard percentage;


8. Wal Mart as a discount store falls into what pricing group?

a. high-markup, lower-volumeb. low-markup, higher-volumec. high-markup, higher-volumed. low-markup, lower-volumee. none of the above

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8. Wal Mart as a discount store falls into what pricing group?

a. high-markup, lower-volumeb. low-markup, higher-volumec. high-markup, higher-volumed. low-markup, lower-volumee. none of the above

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CONCEPT #8

Price Group

High Mark-up, Lower-Volume (Specialty Stores)

Low Mark-up, Higher-Volume (Discount Stores)

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9. Which of the following wholesaler activities is true?

a. Pays much attention to communication tools to generate sales;b. Keen to providing favorable store atmosphere to customers;c. Do not hold inventories;d. Includes manufacturers and those engaged in production;e. Sells goods and services to those buying for resale or business use;

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9. Which of the following wholesaler activities is true?

a. Pays much attention to communication tools to generate sales;b. Keen to providing favorable store atmosphere to customers;c. Do not hold inventories;d. Includes manufacturers and those engaged in production;e. Sells goods and services to those buying for resale or business use;

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CONCEPT #9

A wholesaler is involved in selling goods and services to those buying for resale or business use;

It usually doesn’t pay much attention to communication tools or store atmosphere to generate sales;

It holds inventories;

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10. Which is not a market logistics decision?

a. What optimum number of units to produce?b. How should orders be handled?c. Where should stock be located?d. How much stock should be held?e. How should goods be shipped?

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10. Which is not a market logistics decision?

a. What optimum number of units to produce?b. How should orders be handled?c. Where should stock be located?d. How much stock should be held?e. How should goods be shipped?

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CONCEPT #10

Market Logistics Decisions

How should orders be handled?Where should stock be located?How much stock should be held?How should goods be shipped?

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chapter 16: managing retailing, wholesaling and logistics

Education

major types of retailer

level of retailer service

level of service

selling price

discount operations

conventional retail

final consumers

increased services